DR Horton Inc (DHI)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		1.09	1.17	1.06	1.21	1.26
DOH	days	333.37	312.76	344.03	302.27	290.55

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.09
= 333.37

Days of Inventory on Hand (DOH) measures how many days it takes for a company to sell its average inventory. Here is the analysis of DR Horton Inc's DOH over the past five years:

1. For the fiscal year ending September 30, 2024, DR Horton Inc had 333.37 days of inventory on hand. This indicates an increase compared to the previous year, suggesting that the company took longer to sell its inventory.

2. In the fiscal year ending September 30, 2023, the company had 312.76 days of inventory on hand. This was an improvement from the prior year but still higher compared to two years ago.

3. In the fiscal year ending September 30, 2022, DR Horton Inc had 344.03 days of inventory on hand, signaling an increase from the previous year. This may indicate potential inefficiencies in managing inventory levels.

4. For the fiscal year ending September 30, 2021, the company's DOH was 302.27 days. This was higher than the year before, suggesting a slower inventory turnover rate.

5. In the fiscal year ending September 30, 2020, DR Horton Inc had 290.55 days of inventory on hand, showing a slight increase from the previous year.

Overall, the trend in DR Horton Inc's DOH shows some fluctuations over the past five years, with periods of increases and decreases. Investors and stakeholders should closely monitor this ratio to assess the company's inventory management efficiency and its impact on cash flow and profitability.